Business Leaders Positive on Economy: Expectations for Sales, Hiring
and Investment Make Sharp Rise

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WASHINGTON--(BUSINESS WIRE)--CEOs’ plans for hiring and investment and expectations for sales over
the next six months jumped sharply, according to the Business
Roundtable first quarter 2017 CEO Economic Outlook Survey.

The Business Roundtable CEO Economic Outlook Index — a composite of CEO
projections for sales and plans for capital spending and hiring over the
next six months — made its largest increase since the fourth quarter of
2009.

The Index jumped 19.1 points, from 74.2 in the fourth quarter of last
year to 93.3 in the current quarter. For the first time in seven
quarters, the Index has risen above its historical average of 79.8. Its
highest level over the past 10 years was 113, reached in Q1 2011.

CEO plans for hiring increased by 18 points from the previous quarter,
while expectations for sales and capital expenditures increased by 21
and 18.4 points, respectively, over the previous quarter.

CEOs project 2.2 percent GDP growth in 2017, a 0.2 percent increase over
their projection for 2017 made last December.

“I am enthusiastic about the opportunity to enact a meaningful pro
growth agenda that will benefit all Americans. As these results confirm,
business confidence and optimism have increased dramatically,” said
Jamie Dimon, Chairman and Chief Executive Officer of JPMorgan Chase &
Co. and Chairman of Business Roundtable.

In a special question posed this quarter, 79 percent of the responding
CEOs identified tax reform (52 percent) and regulatory reforms (27
percent) as the two best ways to create a positive environment for their
company’s growth. Fifteen percent picked infrastructure investment as a
third priority.

“Our CEOs are committed to working collaboratively with policymakers
to drive policy solutions, starting with far-reaching tax reform and a
smarter approach to regulation,” Dimon said.

Joshua Bolten, Business Roundtable President & CEO, added, “CEOs
appear to be responding to early indications that the new Administration
is serious about creating a better environment for job creation and
investment in America.”

Survey Results

The survey’s key findings from this quarter and the fourth quarter of
2016 include:

CEO Survey Results & Sub-Indices

2016 Q4

2017 Q1

Quarter-Quarter Change in Sub-Index

Increase

No Change

Decrease

Sub-Index

Increase

No Change

Decrease

Sub-Index

How do you expect your company’s sales
to change in the next six months?

67%

19%

14%

102.8

78%

18%

4%

123.8

+21.0

How do you expect your company’s U.S. capital
spending to change in the next six months?

35%

43%

21%

64.2

46%

40%

13%

82.6

+18.4

How do you expect your company’s U.S. employment
to change in the next six months?

35%

35%

30%

55.6

41%

41%

18%

73.6

+18.0

First Quarter 2017 Business Roundtable CEO Economic Outlook Index

The Business Roundtable CEO Economic Outlook Index — a composite index
of CEO plans for the next six months of sales, capital spending and
employment — increased from 74.2 in the fourth quarter of 2016 to 93.3
in the first quarter of 2017. The long-term average of the Index is 79.8.

About the Business Roundtable CEO Economic Outlook Survey

The Business Roundtable CEO Economic Outlook Survey, conducted quarterly
since the fourth quarter of 2002, provides a forward-looking view of the
economy by Business Roundtable member CEOs.

The survey is designed to provide a picture of the future direction of
the U.S. economy by asking CEOs to report their plans for their
company’s sales, capex and employment in the next six months. The data
are used to create the Business Roundtable CEO Economic Outlook Index
and sub-indices for sales, capex and hiring expectations. All of these
indices are diffusion indices that range between -50 and 150 — where
readings at 50 or above indicate an economic expansion, and readings
below 50 indicate an economic contraction. A diffusion index is defined
as the percentage of respondents who report that a measure will
increase, minus the percentage who report that the measure will decrease.

The first quarter 2017 survey was conducted between February 8 and March
1, 2017. Responses were received from 141 member CEOs. The percentages
in some categories may not equal 100 due to rounding. Results of this
and all previous surveys are available at brt.org/resources/ceo-survey.

Business Roundtable CEO members lead companies with nearly 15 million
employees and more than $6 trillion in annual revenues. The combined
market capitalization of Business Roundtable member companies is the
equivalent of nearly one-quarter of total U.S. stock market
capitalization, and Business Roundtable members invest $103 billion
annually in research and development – equal to 30 percent of U.S.
private R&D spending. Our companies pay $226 billion in dividends to
shareholders and generate $412 billion in revenues for small and
medium-sized businesses annually. Business Roundtable companies also
make more than $7 billion a year in charitable contributions. Learn more
at BRT.org